Public Meeting to Consider a Proposed Report to the California State
Legislature on Funding Sources of California's Air Pollution Control Districts
with Budgets Exceeding One Million Dollars

SUMMARY OF AGENDA ITEM:

The staff presented a summary of the proposed report, including descriptions
of statutory requirements, district budgets, sources of funding, sources
of fee income, and how funds are allocated among district programs and
services. The FY93-94 budgets for the 12 districts discussed in the report
ranged from $104 million to $1.6 million. Most funding comes from fees
(52 percent) and vehicle registration funds (17 percent) on a statewide
basis. Of the fees, the oil and gas industry contributed 33 percent and
manufacturing 27 percent of the total. Fines and penalties from enforcement
activities averaged 2 percent of the total funds.

Staff noted that, because each district defines budget categories in
a non-uniform way, the report does not compare district program budgets.
The Board requested next year's report provide that information. This will
allow district-to-district comparisons of programs and revenues. The Board
also indicated that ARB should not impose undue burdens on districts as
staff develops standard reporting formats.

After directing staff to work with CAPCOA on standardizing program and
revenue reporting for next year's report, the Board approved the report
for submittal to the Legislature and the Governor.

ORAL TESTIMONY:

Larry Robinson Sacramento
Metropolitan AQMD

FORMAL BOARD ACTION:

Approved Report by a 9-0 vote.

RESPONSIBLE DIVISION: EO

STAFF REPORT: Yes (26 pages)

95-5-2

Public Meeting to Consider A Status Report on the State
Implementation Plan (SIP) and the Federal Implementation Plan (FIP)

The staff reported on Congressional rescission of the Federal Implementation
Plan (FIP) and the progress that has been made in obtaining U.S. Environmental
Protection Agency (U.S. EPA) approval of California's own State Implementation
Plan (SIP).

On April 10, 1995, President Clinton signed California- sponsored legislation
to permanently eliminate the FIP. Staff clarified that the rescinded FIP
measures are not the same as the national standards assigned to U.S. EPA
as part of the SIP.

National emissions standards are critical to the SIP. The U.S. EPA has
committed to pursue standards for heavy-duty diesel trucks and off-road
equipment, locomotives, and pleasure craft. ARB and U.S. EPA staff are
working together on the proposals for heavy-duty engines.

U.S. EPA advanced the SIP approval process, finding the entire California
SIP to be complete and adequate for rulemaking on April 18, 1995. The agency
is due to follow up with a letter to the Air Resources Board outlining
any SIP approvability issues in early June. These issues may include credit
for national standards and funding for vehicle scrappage measures, as well
as technical clarification. The staff expects to resolve any issues favorably
and gain approval of the plan. The U.S. EPA intends to propose action on
the SIP in October 1995, with final action in 1996.

The staff provided an update on the State's commitment to adopt SIP
measures, including the schedule for public hearings through 1997. For
example, the lower oxides of nitrogen (NOx) standard for medium- and heavy-duty
gasoline vehicles is headed for a hearing this September, with industry
support. The Bureau of Automotive Repair will hold a June 15 hearing on
regulations to implement the enhanced inspection and maintenance program
(I/M). The I/M regulations are expected to be adopted and submitted to
U.S. EPA in time to avoid the lapse of a sanctions clock on June 30.

Finally, the staff described the progress of a joint state and local
SIP strategy, the mobile NOx program in the five-district Sacramento Region.
The program is designed to address heavy-duty engines by offering incentives
to accelerate introduction of cleaner engines and, Board support the Sacramento
District's application for federal Congestion Mitigation and Air Quality
Improvement Program (CMAQ) funds to implement the regional mobile NOx program.

ORAL TESTIMONY: None

FORMAL BOARD ACTION:

Approved Resolution 95-20 by a unanimous vote, endorsing the Sacramento
Metropolitan Air Quality Management District's application for CMAQ funds
to support the regional mobile NOx program.

RESPONSIBLE DIVISION: EO/OAQTP

STAFF REPORT: None

95-5-3

Consideration of Research Proposals

Approved resolutions 95-21, 95-23, 95-24, and 95-25 by a 9-0 vote. Resolution
95-22, "Common Indoor Sources of Volatile Organic Compounds: Emission
Rates and Techniques for Reducing Consumer Exposures," was held over
until the next Board meeting.